BOE, PBOC Agree on Currency Swap

By

Paul Hannon

June 22, 2013 9:36 p.m. ET

LONDON—The Bank of England and the People's Bank of China said on Saturday they had reached a three-year deal to swap sterling and yuan when needed, the first such agreement between China and a member of the Group of Seven largest developed economies, and a move that should help the U.K. realize its ambition to turn London into a major offshore hub for trading the yuan.

Swap lines typically allow banks to access foreign currency in times of crisis. The BOE has such arrangements with the Federal Reserve, European Central...